Credit management

What is Credit management?

When we talk about Credit Management, we are talking about the front end credit management functions of a business. Including opening of new accounts, processing and vetting statements, telephoning overdue accounts and all the day to day functions of dealing with customer queries and collecting accounts as they fall due.   The Credit Management Christchurch website was set up to provide Credit Management information for Business.

What does this mean in practice?

If your business normally sells on monthly trade terms (payment on the 20th of the month, following the month of invoice) then payment on the 30th of the month might be quite acceptable.  However, if the account was paid three months later you might not be so happy.  There is always a happy medium that the "supplier" can live with and the "buyer" can meet.  Stopping credit on the 21st of the month can be counter productive and while your cash flow may improve, it may also result in loss of sales with credit worthy customers, who can't always meet the 20th payment date every month.  The credit management process covers a number of areas and there is never a simple "fix all" formula that can be implemented overnight.

Question:  How long did it take for your debtors to blow out?  Did it take 6 months, 12 months, 18 months, years?  Well, to fix the problem it is going to take time to "educate" your customers to pay sooner.  The "Wham Bang thank you Ma'm" may produce fast results but it might not be what you want long term.  A far better strategy is to work a ledger quietly, doing 100 things 1% better and show consistent improvement over 6-12 months!

Some very good reasons to outsource your Credit Management Services with Credit Advice are as follows:

• Improve your cash flow and get your accounts paid sooner

• Passion! Employ someone who "enjoys" collecting money with a passion

• Free up "your time" to work on the parts of the business that you like working on and that produce your sales

• Peace of Mind. Do you worry about your debtors not paying?

• Employ an "Expert" to collect your overdue accounts

• Employ a "part time expert" not a full time fill in, someone who has "specialist knowledge" in this area

• No PAYE, Holiday Pay, Kiwi Saver or ACC to pay

• By doing the above you will reduce your bad debts

Why wait, call us today and we will come around and discuss your concerns. For Credit Management Christchurch, for Credit Management Wellington and Credit Management Auckland call:

Gary Whiteside

Credit Advice.co.nz

Ph 03 355 6291

gary@creditadvice.co.nz